TIP, IBM expand lease agreement

The Technological Institute of the Philippines (TIP) and IBM Philippines recently expanded an existing lease agreement wherein IBM will continue to supply TIP’s computer hardware requirements.

TIP offers college education, particularly in the fields of engineering, architecture, business, marine and information technology. With three campuses within Metro Manila, 22,000 students combined, and its current drive to further expand and improve its student computing facilities and internal administrative systems, TIP’s computer requirements are very high.

Prior to leasing from IBM, TIP had over a thousand unbranded computer units being used in its laboratories and offices. "When these unbranded computers need to be replaced, they do not have any resale value at all. Maintaining them is such a costly matter too," explains Elizabeth Q. Lahoz, executive vice president of TIP.

In order to solve this problem, in 2001 TIP signed a lease agreement with IBM for 400 units of IBM NetVista personal computers for use in its different student laboratories and administrative offices. But because TIP is continuing to expand its facilities, this year TIP has again taken out a new lease for 700 units on top of the original 400 units, bringing TIP’s IBM PC count to 1,100. These 1,100 are spread out over TIP’s three campuses.

"The lease arrangements greatly reduce the cost of maintaining TIP’s computer infrastructure, and gives the school greater financial flexibility," Lahoz adds. Under the two separate three-year lease agreements, IBM will quickly replace any unit that goes down within 24 hours. TIP also has the option of upgrading some or all of its IBM machines included in a contract after two years of the contract start date. If the school chooses not to upgrade any of its PCs, it can finish the lease period and opt down to own the IBM machines in the end.

Most of the 1,100 IBM computers that TIP leases now, have gone to IT expansion projects such as added student computer laboratories, new multimedia and instructional technology rooms, and faculty computing facilities. But TIP still has hundred of unbranded computers. So in the next few years, TIP hopes to be able to replace all its unbranded computers.

Aside from supplying TIP’s and servers, IBM is also helping TIP expand its network infrastructure within its three campuses. The project started last March 2003 and is targeted to be completed by June 2003. "So far everything is going according to schedule, I am confident that IBM will finish in time for the start of the school year," comments Lahoz.

"We have the capability to leverage a large pool of technical and even financial resources, which benefits our clients and partners. IBM’s leadership in enterprise services and information technology puts IBM in an ideal position to provide hardware and consulting support to organizations like TIP," said Rosa Ana Sison, IBM Philippines’ country manager for personal computers.

"Being powered by IBM gives us a more secure feeling knowing that we have as a partner a giant in the industry. When we signed the first lease agreement in 2001, we were assured that we would get the best and the latest as far as our IT needs were concerned," Lahoz said.